ZeaChem formally announced construction of the final phase of its Boardman demonstration ethanol production plant.

The final phase of the plant's construction — which will add the capability to turn biomass into sugar on the front-end and produce cellulosic ethanol on the back-end — is expected to be completed this summer.

The demonstration plant started operation on its key processing technology in January. That same month, the company landed a $232 million loan guarantee that will help fund the construction of a commercial-scale plant, which is also planned for Boardman. While the demonstration plant has a capacity of 250,000 gallons per year and will employ 25 people when it's fully operational, the commercial plant would have the capacity of 25 million gallons per year and would employ a full-time staff of 65 people.